April – Start of the New Tax Year 2024/25

With the start of a new tax year and recent budget changes taking effect this month here are the main headlines that could affect you.


VAT Registration Threshold

  • The VAT registration threshold will be raised from £85k to £90k this month


Dividend Allowance

  • The tax-free allowance for dividend income dropped from £2,000 to £1,000 from April 2023 and will fall again from £1,000 to £500 from 6 April 2024


Personal Allowance

  • The personal allowance is unchanged at £12,570


National Insurance

  • Employee National Insurance is reduced from 10% to 8%
  • Self-employed National Insurance is reduced from 8% to 6%


Employment Allowance

  • This remains unchanged from last year, meaning eligible employers can reduce their National Insurance liability by up to £5,000 allowance


National Minimum Wage increases

Aged 21 and above   £11.44

Aged 18 to 20 inclusive  £8.60

Aged under 18 (but above compulsory school leaving age)  £6.40

Apprentices* (under 19 / 19 or over in 1st year of apprenticeship)  £6.40

*Apprentices over 19/ have completed their 1st year of their apprenticeship are entitled to the minimum wage for their age